“We have an "A" rating with our clients and want to keep it that way.”

I have great conversations with our clients regularly, and I will be the first to admit I am more than happy to steal any best practices I can from them. We like to call it R&D. (Rip off and distribute, with their consent, of course :). One recent conversation I had with a large multinational manufacturing client spoke about the level of customer service offered as an essential way to gain and retain customers. The CEO shared an easy but often neglected step in servicing clients that can significantly impact any business; Paying vendors on time.

I found it strange that paying a vendor was at the top of his list, but a good vendor can make or break your business, as he explained. The key to happy customers is a satisfied vendor, which will result in repeat sales and more referrals for you as the customer.

He explained, very few businesses manufacture, sell and distribute their products and services end to end. But customers always need to buy something. The more vendor relationships you have, the more likely it is that any one of them can help you in a pinch.

When a prospective client has an issue with a competitor, it could be that behind the scene, the relationship is plagued with poor payment practices; we can often move in with a solution for them without too much disruption to our own company's supply chain. Paying vendors on time is the surest way to gain trust and support.

It does not take much effort or expense to make sure everyone gets paid in full at least 30 days after invoicing; It just takes good planning before things get tight on cash flow, as well as constant communication.

Step #1 Have a cloud-based accounting solution that offers accessible real-time data collection. My recommendations are Quickbooks Online (QBO), Xero or Sage Intacct.

Step #2 have a cash management system like #Dryrun allows you to take the information with ease from your accounting system and adjust it to reality. Habituate a process of knowing where your bank account stands, the money coming in, and the money going out and pay the people who drive your business on time.

It's that easy.

Summary: What you need to do as an entrepreneur for relationships to go smoothly when it comes to finances is to have excellent management skills> know-how best to make use of them and not let anything slip through the cracks!

For the ultimate handle on such management skills and best practices, I would highly recommend talking to a Dryrun Partner for help: https://dryrun.com/featured-partners/